In a close 5-4 decision, the Supreme Court has ruled that tribes incurring overhead costs when billing private insurance companies, Medicare, and Medicaid are entitled to funding from the federal Indian Health Service (IHS) under the 1975 Indian Self-Determination Act. This decision ensures that health care programs managed by tribes are on par with those overseen by the IHS. Morgan Saunders, an attorney with the Native American Rights Fund, believes that this ruling empowers tribal nations to make decisions that benefit their communities.
The Northern Arapaho Tribe in Wyoming and the San Carlos Apache Tribe in Arizona are among the many tribes facing substantial overhead costs in recent years. The Northern Arapaho Tribe spent $1.5 million on billing costs over two years, while the San Carlos Apache Tribe incurred nearly $3 million in three years. This ruling could result in the federal government paying between $800 million and $2 billion annually for tribes managing their healthcare programs, as estimated by the Department of Health and Human Services.
This ruling has far-reaching effects on tribal healthcare funding across the country, as it provides crucial funding for tribes to exercise their sovereignty when taking over these programs. It addresses healthcare funding disparities for tribal communities nationwide and enables them to make decisions that benefit their communities.
